Buy-and-Hold investors in ~BASICMATERIALS experienced a maximum drawdown of -43.15% over the last three months. It fell by -39.46% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +31.77%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~BASICMATERIALS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 27 Jan, 2017 to 18 Dec, 2018. One must note that ~BASICMATERIALS is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 1 year and 11 months, ~BASICMATERIALS underperformed the SP500 index on 51% days.

During the last three months ~BASICMATERIALS was mostly loss making and delivered on average -0.76% per day. It's best return during this period (of +5.14%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -6.56%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -15.3% of investor capital.

During the last year ~BASICMATERIALS had 6 profitable months and 6 loss making months. ~BASICMATERIALS returned profits in fewer months than SP500 index. ~BASICMATERIALS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -20.65% compared to -7.75% returned by SP500 index in Dec 2018. ~BASICMATERIALS had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both ~BASICMATERIALS and SP500 index significantly outperform during months when quarterly/annual results are announced.

I owe my success to having listened respectfully to the very best advice, and then going away and doing the exact opposite. -- G. K. Chesterton

~BASICMATERIALS is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~BASICMATERIALS's volatility from 2 Oct, 2018 to 6 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~BASICMATERIALS has positive skewness in it's return distribution. This indicates that investors can expect ~BASICMATERIALS to make attempts to recover from drawdowns quickly. Which makes ~BASICMATERIALS a good candidate for momentum based trading on short-term bullish trends or counter-trends.

~BASICMATERIALS has more chance of extreme outcomes than the SP500 index. Therefore, ~BASICMATERIALS must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than ~BASICMATERIALS.

Based on your interest in ~BASICMATERIALS you may find it interesting to know that PRQR, I and TPNL have all shown remarkable performance this year and deserve to be on every investor's watchlist.

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you.
Contribute